QLD Cairns ???

I have been doing some research in the Cairns area. Last time we visited it was like a ghost town (middle of COVID) but they where doing major works to the roads around the centre. I know there is some good and bad areas. Has anybody recently purchased? Any opinions on the area would be greatly appreciated. Thanks Virginia

 

I'm there every 2nd week. It's still a ghost town tourist wise. But it has almost no vacancy for Resi property. There has been a heap of migration.

Ben from Property Shop has a great property management team and sells stuff as well.

 

As mentioned before all the southerners are buying up in cairns

 

I tell you what. I went for a holiday to Cairns recently. North QLD looks pretty 10/10, especially from a lifestyle / location POV. Cairns, Townsiville, Palm Cove maybe due to pop off and see some great CG. Townsville in particular has gone sideways past 10-15yrs. High insurance premiums that bring down Cashflow maybe a deal breaker for people turning these locations into IP's. keen to hear other peoples thoughts.

 

Have you thought about the Gold Coast?

 

Just purchased a house in Townsville... Appears people are waking up to it. I didn't even consider it until Darwin got out of control and could not see any value. The blocks in Zuccoli / Durack are an absolute rip off in my opinion for the block size you get.

 

Cairns almost ready to pop...

Been researching the area for a while and ended up investing here (blocks of units) again after a hiatus of 18 years!

Vacancy rates are lowest-ever at almost zero percent (fluctuating b/w 0.2%-0.4%). Interstate migration has absorbed virtually all rental supply - borders opening (local & international) will further exacerbate this.

Average yield of c5.5-6% (gross), blocks of units as high as almost 10% - with fast increasing rents. Most of the units in the blocks I bought getting new tenants secured at 15% higher rent. So the 9% yield at-buy goes to 12% within months. These numbers together with the vacancy rates and expected opening of borders will set a rocket in prop values in the region.

Will put my neck out and state with reasonable confidence that we will see 25%+ rise in values in Cairns in 2022. (not advice - just overconfidence !!! so DYOR)!

 

We are in on Mission Beach, not Cairns but similar drivers i reckon

 

did you move mate?

 

No currently at the end of a 9 month trip around Oz and back to VIC next week.

With a young kid now its a lot easier being around family etc

Mission Beach play is investment but definitely somewhere i would like to spend some time later in life

 

On Townsville forums people are complaining that they have a combined income of $220K but can't get a rental because all the decent places have 15 other similar applications. I have family that moved to cairns and setup a thriving business this year but they are living in the caravan park until they can find a good enough place.

 

I think the reality is Townsville is actually a really affordable market for many and comparatively is much better value than many other regional cities in terms of services, a diversified economy and employment opportunities. This has been like 10 years in the making ....
We left Darwin to Townsville because value is in Townsville. Blocks are small and old in Darwin relative to good suburbs in Townsville. That of course excludes the life style options where one can travel to Cairns, Airlie Beach, Whitsundays and more. I know of at least 5 different people in my social network that have left Darwin for Cairns and Townsville.

 

I know at least a dozen who have left remote nt to move back to or move to Cairns. They still want the same things as Darwin and not as hot. The weather change is wonderful!

 

It is really interesting... bit of a no brainer given there is more value for money over there... and as you say weather is a bit cooler.

 

I looked to buy there but eventually didnt. insurance premiums +high rates too risky.... but yes i saw properties with 7% net yields

 

My insurance us 110 per month in Townsy. Gotta ensure you get the right property that isn't flood effected. Much like other parts of Australia... look at NSW currently.

 

I changed everything over to Sure insurance this year. Over three properties in Cairns I saved 7k. And yeah rents are very hot, We also do an air bnb and have had a few people stay while looking for a permanent rental. With borders opening up and tourism set to return things are looking up.

 

My wife wants to go to Cairns initially but we opted for Townsville.

Might look at Cairns in the future to live.

Their great. Hopefully puts some pressure on the other insurance companies to quote the house not the postcode

 

Was wondering if anyone could recommend a buyers advocate in Cairns. Cheers.

 

Are there many burbs in the 400 to 450K that are similar to Buehland Beach in Townsville? By that I mean the family vibe.